The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Canada's westernmost province benefits from $659.8 million of exploration in 2021; low-carbon future expected to add a boost North of 60 Mining News – February 4, 2022
The Tahltan Central Government helped design this Tahltan-themed haul truck bed at the Red Chris copper-gold mine in Northern BC. According to the Explore our Economy report, roughly 21% of the 2021 mineral exploration investments in BC were spent with First Nations-affiliated vendors.
British Columbia and the First Nation people in Canada's westernmost province are poised to benefit from the increased need for minerals to build a low-carbon future, according to a new economic impact study the Association for Mineral Exploration published in partnership with iTOTEM Analytics.
"With demand for the minerals and metals we discover soaring to meet the needs of a low-carbon economy, we understand the acute importance of the critical role we play in achieving net-zero goals," said AME President and CEO Kendra Johnston.
During the opening day of AME's Roundup 2022, BC Minister of Energy, Mines and Low Carbon Innovation Bruce Ralston announced that mineral exploration expenditures in BC hit C$659.8 million (US$520.2 million) during 2021, a roughly 28% jump over the C$513.5 million of exploration spending in 2020 and nearing an all-time record for the province.
"Mineral exploration and mine development are fundamental and essential industries in BC and will continue to play a critical role in the growth of our province and the transition to a low-carbon economy," Ralston said during the AME Roundup 2022 Opening Ceremonies. "We are proud of the direction we are moving in and continue to promote investor confidence and foster partnerships between government and industry to promote our resource industry locally, nationally and internationally."
Maybe the most impressive number to come out of the "Explore our Economy" report published by AME and iTOTEM is that roughly 21% of the 2021 mineral exploration investments in BC were spent with First Nations-affiliated vendors. This is compared to federal efforts to ensure that Indigenous vendors hold 5% of public contracts by 2024.
Of the 445 vendors reported in Explore our Economy, there were more than 35 indigenous-affiliated businesses associated with 19 First Nations. These are essential partners and vendors in the mineral exploration supply chain, according to the report.
"Our industry also aims to be a leader in reconciliation with Indigenous peoples through collaboration, shared planning, and procurement," said Johnston. "This report demonstrates how vital Indigenous-affiliated business and collaborative partnerships are to mineral exploration, and how these relationships can advance reconciliation and economic advancement for Indigenous communities."
With the growing demand for the minerals and metals needed for a low-carbon economy, it is expected that new records for mineral exploration and the consequential investments with First Nations vendors will continue to grow in the coming years.
"Huge volumes of metals including copper, gold and nickel, together with critical minerals, are required for electric vehicles, renewable energy generation, energy storage and transmission, medical technology and more," AME and iTOTEM inked in a summary of the Explore our Economy report. "These metals occur naturally in BC where we are already exploring for these critical minerals using the highest environmental, social and governance (ESG) standards."
This includes companies such as FPX Nickel Corp. in Central BC and Giga Metals Corp. in Northern BC investigating the potential to sequester carbon dioxide into the tailings of future nickel mines in the province – an innovation that could lower the carbon footprint of the nickel, and the EV and renewable energy storage batteries that nickel goes into.
AME and iTOTEM say that such innovative efforts by entrepreneurs in the mineral exploration sector to tackle climate challenges and bolster BC communities will enable the province to recover and adapt to post-pandemic realities.
"We know from EOE that a mineral exploration site can anchor a wide variety of businesses across a range of goods, materials, and service categories for decades – businesses which might otherwise be underutilized," iTOTEM penned in the conclusion of the Explore our Economy report.
And these investments boost every facet of BC's economy, from the 1,100 mineral exploration companies headquartered in Vancouver to hiring local workers in the most remote corners of the province.
"Our members discover new projects that develop into the operating mines that produce the minerals and metals needed for everyday life," said Johnston. "Explore our Economy demonstrates how the mineral exploration industry is essential to thousands of businesses and people in all corners of the province, helping to ensure a strong and vibrant provincial economy for generations to come."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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